Author Topic: Opening a LHBS  (Read 2105 times)

Offline 801albio

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Opening a LHBS
« on: October 11, 2017, 11:52:17 PM »
My business partner and I are looking to open a new local home brew supply store. There are only two in our live/work area and we feel a third would be great!

With that said, we aren't looking to become millionaires, but we are looking to do what we love - next to making beer.

So, what we are looking for are a few resources or other LHBS owners to discuss with us some of their hurdles, business plan preparation, startup costs, supplier ideas/contacts, and roughly expected overhead. If possible we are looking for estimations on income. I know this is asking a lot and not likely to get a lot of information back as well as income is based on many factors, but any information is greatly appreciated.

We have reached out to our local SCORE chapter to get help with writing and planning, and anything else we can think of. Outside of that, we are still in the early stages of accomplishing this dream.. thank you for your time, cheers!

Offline hopfenundmalz

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Re: Opening a LHBS
« Reply #1 on: October 12, 2017, 01:42:02 AM »
Contact the AHA directly. They have guidelines.
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Offline Kevin

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Re: Opening a LHBS
« Reply #2 on: October 12, 2017, 06:20:46 PM »
My business partner and I are looking to open a new local home brew supply store. There are only two in our live/work area and we feel a third would be great!


Do your (potential) customers think it would be great? Where I live there are probably 4 outlets for buying homebrew supplies. Three of them survive by selling other products. I doubt they would even notice a loss in revenue if they stopped selling homebrew products.

If you have two in your area already I imagine one is doing better than the other. Why? What can you do better? How loyal are their customers? Can you do anything to take them away?

Do the other LHBS's have ties with the area homebrew clubs? Ties with the area craft brewers? Could you take those affiliations away? If not, can you compete against those affiliations?

Then you have to consider online retailers. Can you compete with northernbrewer, morebeer etc?

You need to do a LOT of homework. Work with an experienced business planner and really delve into the market. Go into this with eyes open... not fingers crossed. Good luck.
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Offline stevep

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Re: Opening a LHBS
« Reply #3 on: October 18, 2017, 05:51:26 PM »
So, what we are looking for are a few resources or other LHBS owners to discuss with us some of their hurdles, business plan preparation, startup costs, supplier ideas/contacts,

Shoot me an email steve@brewersassociation.org

While availability of most of our retail resources are limited to AHA Member Shop owners and staff, we have a number of materials and data to aide you in putting together a business plan.

Steve Parr
AHA Assistant Director
Steve Parr
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American Homebrewers Association

Offline Steve Ruch

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Re: Opening a LHBS
« Reply #4 on: October 18, 2017, 06:51:04 PM »
Where?
Crescent City, CA

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with hairy old women

Offline Rinranarin

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Re: Opening a LHBS
« Reply #5 on: January 04, 2018, 09:51:47 AM »
It is a useful thing for the reader. To admit that it is new knowledge for me.

Offline jkirkham

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Re: Opening a LHBS
« Reply #6 on: February 11, 2018, 06:02:19 AM »
My friend just took over a lhbs and right now it’s kind of a struggle is how I feel. He receives inventory from brewcraft USA. He also sells cheese and wine kits. Purchasing equipment grain and hops is probably the least of your worries because a supplier is happy to take your money. What I feel you really need is cheap rent and routine customers.

There is only one lhbs where I live in a town of 75k and I think my friend is breaking even, even when he buys grain through a brewery because the shipping is cheaper. An over saturated market is the worst market to enter and if there are other home brew shops I feel like the message you will be giving off is that you can do it better.

I would not expect to make tons of money, my friend barely pays himself and can’t afford to pay even one employee.

If I were going to do it, it would be more of a passion business I would do in the side.

You’re not just competing with local shops, but also online retailers.
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